U.S. Weighs Currency Pact With China as Part of Partial Deal

[Yankee-stani]

The White House is looking at rolling out a previously agreed currency pact with China as part of an early harvest deal that could also see a tariff increase next week suspended, according to people familiar with the discussions.

The currency accord, which the U.S. said had been agreed to earlier this year before trade talks broke down, would be part of what the White House considers to be a first-phase agreement with Beijing. It would be followed by more negotiations on core issues like intellectual property and forced technology transfers, the people said.

The internal deliberations come as a team of Chinese negotiators, led by Vice Premier Liu He, arrived in Washington to resume trade talks with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin starting Thursday. It’s the first face-to-face talks between senior officials since July.

Liu He


The offshore yuan rose more than 0.3%, erasing an earlier loss. U.S. stock futures whipsawed Thursday morning in Asia amid uncertainty about the outcome of the negotiations.

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[OBLiTeRate TrumpTurd]

Currency pact ??
What does it really mean ??

Is this related to the public circulation of DIGITAL CNY ( Hybrid Crypto CNY ) ?

Is the ( Undisputed Cockroaches Murica ) trying to prevent its
Murica Paper Toilet money from EROSION sliding to zero ??

I am worry that the Super ( COWARD and GUTLESS ) Chinese Elites
such as this Economist Liu He will agree to protect this
worthless Murica Paper Toilet money.

It is beyond belief that the Super ( COWARD and GUTLESS ) Chinese Elites
such as this Economist Liu He ... are still trusting the ( Undisputed Cockroaches Murica )
to make any deal, ... after this ( Undisputed Cockroaches Murica )
cancelled the 6 nations deal with IRAN &
intentionally withdrawn from Nuclear Missile deal with RUSSIA.

 

[Yankee-stani]

Currency pact ??
What does it really mean ??

Is this related to the public circulation of DIGITAL CNY ( Hybrid Crypto CNY ) ?

Is the ( Undisputed Cockroaches Murica ) trying to prevent its
Murica Paper Toilet money from EROSION sliding to zero ??

I am worry that the Super ( COWARD and GUTLESS ) Chinese Elites
such as this Economist Liu He will agree to protect this
worthless Murica Paper Toilet money.

Isnt Xi trying to purge the pro western comprador class I remember he closed a few pro western think tanks in recent years and purged pro western officials

 

[OBLiTeRate TrumpTurd]

Isnt Xi trying to purge the pro western comprador class I remember he closed a few pro western think tanks in recent years and purged pro western officials

It is so hard to purge them all in a short time.
There are so many hidden traitors inside PRC.

The Super ( COWARD and GUTLESS ) Chinese Elites
such as this Economist Liu He have penetrated the PRC society in every level.

Look at the behavior of the HUAWEI founder Ren Zheng Fei, ... ...

This Super ( COWARD and GUTLESS ) Chinese is always so ready to kowtow
& surrender & capitulate to the ( Undisputed Cockroaches Murica ) all the time.

Sometimes, ... I even suspect President XI himself is a shaky COWARD vs.
the hated #1 Global Criminal nation ( Undisputed Cockroaches Murica ).

 

[Yankee-stani]

It is so hard to purge them all in a short time.
There are so many hidden traitors inside PRC.

The Super ( COWARD and GUTLESS ) Chinese Elites
such as this Economist Liu He have penetrated the PRC society in every level.

Look at the behavior of the HUAWEI founder Ren Zheng Fei, ... ...

This Super ( COWARD and GUTLESS ) Chinese is always so ready to kowtow
& surrender & capitulate to the ( Undisputed Cockroaches Murica ) all the time.

Sometimes, ... I even suspect President XI himself is a shaky COWARD vs.
the hated #1 Global Criminal nation ( Undisputed Cockroaches Murica ).

Well I think the problem is in every country the Yanks and Westerners have big soft power in the world hence you get the comprador class but I think Xi is a Chinese nationalists and is having tough time due to comprador class

 

[Mista]

The RMB is fairly valued. It's the USD which is overvalued, and thus the US is running current account deficit against most countries in the world.

 

[8888888888888]

Their GDP is going to fall if they devalue the USD.

 

[vi-va]

The RMB is fairly valued. It's the USD which is overvalued, and thus the US is running current account deficit against most countries in the world.

International reserve currency has limited control of his currency. US has no other countries currency reserve. It's the price you pay as international reserve currency.

In the opposite, Germany enjoyed devalued EU currency, Germany is the biggest surplus country.

 

[Nan Yang]

Just wait a few more months and Trump will be impeach and replaced.

 

[Brainsucker]

The RMB is fairly valued. It's the USD which is overvalued, and thus the US is running current account deficit against most countries in the world.

Can you explain Mista?

 

[vi-va]

China did not interfere currency. IMF proved.

international reserve currency comes with trade deficit, otherwise other countries won't have dollar reserve.

Can you explain Mista?

 

[Mista]

International reserve currency has limited control of his currency. US has no other countries currency reserve. It's the price you pay as international reserve currency.

In the opposite, Germany enjoyed devalued EU currency, Germany is the biggest surplus country.

They can actually. By cutting interest rates which will trigger a capital outflow and put downward pressure on the USD, or raise rates to appreciate the USD.

If it's just depreciation, they can theoretically simply print USD and dump it on the forex market. But of course doing so will shatter confidence in the USD and the global financial system will be in ruins, and the whole world including the US will head for a massive depression. So historically the US found another way to depreciate the USD: Plaza Accord. The finance ministers of the G5 nations meet up and agreed to dump their USD on the market, therefore devaluing the USD.

 

[OIO]

Isnt Xi trying to purge the pro western comprador class I remember he closed a few pro western think tanks in recent years and purged pro western officials

While decoupling more west influence will be purged.

 

[vi-va]

us choose the second and third. they lost most of currency interference capability.


https://en.m.wikipedia.org/wiki/Impossible_trinity

The impossible trinity (also known as the trilemma) is a concept in international economics which states that it is impossible to have all three of the following at the same time:

a fixed foreign exchange rate
free capital movement (absence of capital controls)
an independent monetary policy

They can actually. By cutting interest rates which will trigger a capital outflow and put downward pressure on the USD, or raise rates to appreciate the USD.

If it's just depreciation, they can theoretically simply print USD and dump it on the forex market. But of course doing so will shatter confidence in the USD and the global financial system will be in ruins, and the whole world including the US will head for a massive depression. So historically the US found another way to depreciate the USD: Plaza Accord. The finance ministers of the G5 nations meet up and agreed to dump their USD on the market, therefore devaluing the USD.

 

[Mista]

Can you explain Mista?

In an ideal efficient free market without any government intervention, all countries should have a balanced current account.

If you have a surplus, it means that the demand for your currency outstrips the supply, and therefore your currency should appreciate until your current account is balanced.

Vice versa, if you have a deficit your currency should depreciate until you reach a balanced current account.

However in the real world, the market isn't free nor efficient. Economies like Singapore or Taiwan wants to accumulate foreign reserves to have a buffer against external shocks, so they put their money in USD which is the world's reserve currency. This creates artificial demand for the USD and artificial supply of their home currency. The market isn't efficient because it can take years for market forces to reflect the current account situation.

Right now China's current account is almost close to zero as a percentage of GDP, so it's fair to say that the RMB is fairly valued. OTOH, the US runs current account deficit with almost every country because of the artificial demand of the USD which pushes up its price.